When most premises liability claims are settled in Virginia, the victim receives compensation in a lump sum payment from the insurance company. However, accepting the settlement proceeds in a structured settlement could make more sense in some cases. If you are considering a structured settlement, you need to know what they are and how they work to decide if one is right for your situation.
What Is a Structured Settlement?
A structured settlement is a resolution of a claim where all or part of the settlement proceeds is paid to you over time. You might take a larger payment when the agreement is reached with the insurance company and then take the rest of the payments over a period of years or for your lifetime.
You will only want to enter into a structured settlement if the amount of your settlement is substantial. However, if you suffered long-term injuries that require expensive medical treatments and affect your ability to work, it may be a good idea to accept a structured settlement. Here are a few benefits of agreeing to this payment arrangement:
- You avoid the risk of spending a lump sum payment too quickly and not having the money you need to support yourself in the future.
- There may be tax benefits to accepting your payment over time.
How Does a Structured Settlement Work?
If you accept a structured settlement, the insurance company would most likely purchase an annuity from another insurance company that specializes in making payments over time. They would pay you the payments according to the agreement you worked out.
You can negotiate the terms of the structured settlement so that you receive payments when you need them. Some of the terms you can decide on include the following:
- Length of the structured settlement. You can decide how long you want to receive payments over time and whether you need them for your lifetime.
- Larger initial payment. If you have medical and other bills to pay, you may want to structure your settlement to receive a larger initial payment.
- Amount of each payment. You can negotiate the amount of your payments and when they are paid to you. For example, you may want to receive monthly or quarterly payments.
- Payment of extraordinary expenses. If you have a significant expense in the future, such as home improvements or college expenses for a child, you could structure your settlement to receive larger payments at that time.
Were you injured in a premises liability accident in Virginia Beach or Norfolk? Are you considering a structured settlement? Our experienced premises liability attorneys are here to answer your questions and negotiate your settlement with the insurance company. Call our Norfolk office at 757-625-1214 or complete our online form to schedule your free initial consultation today to learn more about how we can help you.